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Kishan Credit Card Scheme

Kishan Credit Card Scheme - Salient features

  • Eligible farmer will be provided a Kishan Credit Card and a Pass Book or a Card-cum-Passbook.
  • Revolving cash credit facility allowing any number of drawals and repayments within the limit.
  • Entire production credit needs for full year plus ancillary activities related to crop production to be considered while fixing limit. In due course, allied activities and non farm short term credit needs may also be covered.
  • Limit to be fixed on the basis of operational land holding, cropping pattern and scales of finance.
  • Seasonal sub limits may be fixed at the discretion of banks.
  • Limit of valid for 3 years subject to annual review.
  • Conversion /reschedulement of loans also permissible in case of damage to crops due to natural calamities.
  • As incentive for good performance, credit limits could be enhanced to take cares of increase in costs, changing in cropping pattern etc.
  • Security, margin and rate of interest as per RBI norms.
  • Operations may be through issuing branch / PACS or through other designated branches at the discretion of bank.
  • Withdrawals through slips /cheques accompanies by card and passbook.
  • Personal Accident Insurance of Rs. 50,000 for death and permanent disability and Rs. 25,000/- for partial disability available to Kishan Credit Card holder at an annual premia of Rs. 15/- per annum.

Advantages of the KCC Scheme

  • Full year's credit requirement of the borrower taken care of.
  • Minimum paper work and simplification of documentation for drawal of funds from the bank.
  • Access to adequate and timely credit to farmer.
  • Assured availability of credit for 3 years and avoidance of uncertainly involved in accessing credit on a year to year basis.
  • Annual review of limit and provision for enhancement subject to satisfactory operations.
  • Flexibility in use of credit and saving in interest burden.
  • Flexibility of drawing cash from a branch other than the issuing branch at the discretion of the bank.

 Availability of the life cover/ disability insurance at very low premium in case the farmers meets with accident.

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Please note that this is the opinion of the author and is Not Certified by ICAR or any of its authorised agents.